Sensex ends flat; Tata Steel, Hero, NTPC, ITC down

MUMBAI: The Sensex ended on a flat note on the settlement day of the June F&O series as gains in FMCG, power and IT sectors were offset by losses in oil & gas, banks and capital goods sectors. According to analysts, the market is likely to remain moderately bullish on expectations that Dr Manmohan Singh will push for reforms as the Finance Minister.

Singh plans to issue an "explanatory note" on portfolio investments, an official in his office told Reuters, without giving details about what the statement would say or which tax issues it would address.

"The market is hopeful for two reasons. Firstly, we have seen the Prime Minister is more comfortable in economy-related affairs than any other thing. We have already concluded that he is more of a finance professional than a politician. So that is one thing the market is absolutely comfortable with.

Secondly, there are many reforms that are the lying low, something on the lines of allowing FDI in multibrand retail or going ahead with pension sector reforms. Therefore, after the presidential election, we would see a big flurry of announcements coming from the government. So these expectations are likely to keep the Sensex and the Nifty somewhat on the higher pedestal," Gajendra Nagpal, CEO at Unicon Investment Solutions, said.

The Sensex closed at 16,990.76, up 23 points or 0.14 percent. It touched a high of 17,033.85 and a low of 16,918.87 in trade today.

The Nifty ended at 5,135.35, down 6.55 points or 0.13 percent. It touched a high of 5,159.05 and a low of 5,125.30 in trade today.

"If Nifty futures sustain above 5,200 then they may head towards 5,300-5,350 levels, whereas on downside if they go below 5,100-5,090 levels then selling pressure may intensify pulling they lower to 5,020-4,980 levels.

Nifty futures have seen a rollover of around 60-62 percent from June series to July series as per provisional data. Looking at OI concentration of the July series, fresh call writing is seen at 5,300 strike while put writing at 5,000 strike which also suggests that the market is likely to move between 4,950 and 5,350 for the next couple of days.

Bank Nifty futures settled around the 10,000 mark, and now sustaining above 10,000 may take it to 10,200-10,400 levels, whereas if it fails to hold on to 9,900, then it may drift down towards 9,750 -9,550 levels," Chandan Taparia, Derivatives Analyst, Retail Research (Equity) at Anand Rathi, said.

The BSE Midcap Index was up 0.07 percent and the BSE Smallcap Index moved 0.22 percent higher.

Among sectoral indices, the BSE FMCG Index was up 0.82 percent, the BSE Power Index gained 0.38 percent and the BSE IT Index edged up 0.22 percent. The BSE Oil & Gas Index was down 0.37 percent, the BSE Bankex was 0.32 percent lower and the BSE Capital Goods Index slipped 0.17 percent.

Shares of OnMobile Global fell to an all-time low after ET Now reported that the company's board ordered a probe against its promoter and CEO Arvind Rao for alleged misappropriation of funds.

The market breadth was positive on the BSE with 1,461 gainers against 1,312 losers.

European markets were down on profit booking ahead of the European Union meet in Brussels. European leaders are likely to discuss measures required to boost the sagging economy in the two-day meet. The FTSE 100 was down 0.72 percent, the CAC 40 was 0.65 percent lower and the DAX fell 0.96 percent.